Hard times for too many Baby Boomers
December 9, 2014 Posted by CB Financial
The last of the baby boomers will turn 50 by the end of the year. Often it is the big five-0 that starts people to really think about saving for their retirement.
So with all of those born in the two decades to 1964 now either retired, or galloping toward it, there are bound to be changes to the economy and society in general.
Boomers have changed each life stage they have passed through, and older boomers are redefining what it means to retire.
Retire in peace: for many baby boomers retirement may not be as comfortable as they would like.
They want to be able to enjoy the lifestyle to which many have become accustomed during their working lives.
However, there are challenges. While many have benefited from rising house prices, for many others, the size of their superannuation accounts is not big enough to afford the retirements they would like.
More boomers are entering retirement with debt and their adult children are staying at home for longer, which is making it harder to save.
Bucket list
An online poll was conducted early this year of 1000 people aged 55 plus on behalf of a major super fund. Over half of older Australians said they have a retirement bucket list. Of those with a bucket list:
- More than half (53 per cent) want to travel the world.
- Four in 10 (43 per cent) want to go on a road trip.
- One third (36 per cent) want to visit a world famous attraction or event like Machu Picchu, Niagara Falls or the Rio carnival.
- One in seven (14 per cent) want to swim with dolphins.
- 15 per cent want to write a book.
- One in 10 (11 per cent) want to learn to play a musical instrument.
- 30 per cent want to leave an inheritance to their children.
- Professional advice can help clarify what is needed.
- The earlier a retirement strategy is started the better.
- We rarely see boomers who cannot make relatively small changes in their weekly budgeting to help them have the lifestyle they want in retirement.
- It’s usually not just the budgetary changes, but how they can make little changes on all aspects of their financial affairs that really makes the difference.
